Nokia Corporation: Reversing the Decline in Brand Value


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Case Details:

Case Code : MKTG188
Case Length : 23 pages
Period : 2004-2008
Pub Date : 2008
Teaching Note :Not Available
Organization : Nokia Corporation
Industry : Mobile Phone
Countries : Global

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts

Background Note

Nokia was the world's leading manufacturer and marketer of mobile phones. It was headquartered in Espoo, Finland. As of end 2006, the company's products were divided into four main divisions: mobile phones (wireless voice and data devices for personal and business uses), multimedia (home satellite systems and mobile gaming devices), networks (wireless switching and transmission equipment used in carrier networks), and enterprise solutions (wireless systems for businesses).

The origins of the company can be traced back to 1865, when an engineer called Knut Fredrik Idestam (Idestam) established a wood-pulp mill in southern Finland to manufacture paper...

The Nokia Brand

Nokia had been a dominant player in the mobile phone market ever since it entered the market. It quickly established itself as a strong brand by focusing on branding. The company's philosophy the 'Nokia Way' called for four brand values - creative, inspiring, human, and accessible. The importance of branding was drilled into everyone in the organization through training programs...

Nokia Brand - Losing its Sheen?

Though Nokia continued to be the mobile phone of choice among consumers, in 2002 the total sales of its mobile phones started to show signs of a fall. In the year that followed it faced stiff competition from Samsung and some operator-branded mobile phones.

In 2004, its market share declined to less than 30 percent from around 40 percent in 2003. Analysts also felt that the company had failed to foresee how popular clamshell mobile phones would become. While its rivals were offering these models, Nokia continued to churn out the single piece design popularly called 'Candy Bar'...

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